Written Commentary
GOLD / SILVER
Gold ETF’s yesterday added 127,373 ounces bringing this year’s net purchases back up to 27.7 million ounces. With the silver market into the overnight high sitting roughly $2.75 above last week’s low and sitting $1.50 above the 100-day moving average it is obviously vulnerable to a wave of stop loss selling especially given the negative commodity/deflationary condition in place this morning. Fortunately for the bull camp, silver ETF’s yesterday added 6.39 million ounces to their holdings with that increase the biggest one-day gain since August 25th.
PALLADIUM / PLATINUM
With palladium prices holding near yesterday’s highs in the face of broad market deflationary/fear of slowing psychology, it would appear as if the market is focusing on better-than-expected Chinese PMI data overnight. With platinum failing to benefit from positive Chinese data (because it is primarily used in diesel vehicles instead of gasoline vehicles) the bears are confident this morning. Therefore, we see significant resistance at a recent triple high (which coincides with the 100-day moving average) at $896.25.
COPPER
Given the embarrassing result of the presidential debate and given overnight Chinese economic data it is not surprising this morning to see copper prices trading near unchanged. On one hand, the presidential debate has thrust the markets back into a deflationary/slowing psychology, while the Chinese economic data on its own would have lifted copper prices. In yet another negative, LME copper stocks jumped again overnight, in what many could perceive as a sign of slackening copper demand outside of China.
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